The spirit of entrepreneurialism today in Nigeria is not getting the recognition it deserves. As a major population of emerging youths either prefer office jobs, lack the capital to start a business or lack a proper understanding of entrepreneurship ventures.
Furthermore, the country’s economic situation isn’t inspiring enough, because the government has refused and failed to build good infrastructure nor invest in the people.
Leaving many Nigerians in the dark on one of the greatest assets to money-making and wealth building in today’s world economy.
Who is an entrepreneur and what is the concept of entrepreneurism?
Before we explore further on entrepreneurship ideas to try in Nigeria, it is important to understand who an entrepreneur is and the concept of entrepreneurship itself.
The word entrepreneur is coined from French word “enterprendre”, meaning “to undertake”. Commonly used to describe people who operate a business by undertaking financial risk.
Investopedia defines entrepreneur as “ an individual who creates a new business, bearing most of the risks and enjoying most of the rewards”.
That is any individual who owns a major share in a business or someone that manages a small or medium sized business to create available services for its consumer base. The business could be farming, retail manufacturing, service or freelancing sector.
One important thing to understand is that the defining aspect of entrepreneurship is having full control over your business orientation and operation. The given equation of entrepreneurship by experts in the field is expressed as: individual + capital X product + Consumers = Business.
This implies that to become a successful entrepreneur in Nigeria, you must have a resource capital, a product and a consumer base interested in buying your product. Your product could be something already available in the market or a raw material yet to be released.
The simple idea of entrepreneurship is to look for changes or opportunities in the market and exploit it through creative methods. Since you’re in charge of the business, the supplier of funds and the manager that intervenes between the business and consumers.Thus an entrepreneur can be referred to as the employer, master, merchant but explicitly considered a capitalist (Adam Smith).
4 Common types of entrepreneurship
Before we advance on the types of entrepreneurship business ideas to try in Nigeria. First let’s explore the 4 common types of entrepreneurship.
Small Business Entrepreneurship:
This form of entrepreneurship is usually kick-started by a single individual without the necessary motivation or goal of expanding the business horizons further that it is.
In this type of business, maximum profit only occurs if the business is well received by the consumers. This implies the owners would need to be more proactive in commitment and investment opportunities towards their business. Examples are grocery stores, online vendors, restaurants and retail shops.
Large Company Entrepreneurship:
This usually refers to big-scale companies like Dangote group, UBA PLC, Globacom, Forte Oil PLC and BUA group to name a few. These types of companies open massive job opportunities for workers by creating new divisions within existing opportunities or acquiring other small businesses. The whole point of this is to tap into the market, expand their consumer base or implement new technologies to accrue more profits and deliver services to the people.
Scalable Startup Entrepreneurship:
This type of entrepreneurship is established in identifying business opportunities that allow for rapid but sustainable growth.
In most cases, it starts when founders offer a unique product or service to investors , hoping for rapid business growth and significant financial gains. These types of businesses usually require funding from external investors to grow and expand the business into multiple markets. Examples are in fintech payment services, daycare centres, real estate and e-commerce services
Intrapreneurship:
Intrapreneurship is when an existing company hires you to fulfil the role of an entrepreneur within the organization’s boundaries.
In particular, your role is to drive innovation in products, services, processes and to enhance the company’s future.
Also, you’ll be granted access to the company’s resources minus the risks involved, however you won’t be able to enjoy the same benefits as an entrepreneur or founder.
5 Entrepreneurship Business ideas to Try in Nigeria
The dynamic pursuit of profitable entrepreneurship ideas by Nigerians has not only become a necessity but an opportunity for them to achieve something bigger and greater on the economic world stage.
Globally, Nigeria is increasingly getting recognition as an economic prospect with immense untapped potential, thanks to the growing population of vibrant youths across the country.
In 2022, according to a survey by Fate Foundation, Nigeria had an entrepreneurial index score of 0.58 out of 1.0, Indicating a slightly better than average performance on entrepreneurship development in Nigeria.
The survey also demonstrates that 32% of businesses were created in the last one year while female-led businesses accounted for 40% of businesses created. Majority of these new businesses created by females are in sectors such as Trade (40%), Advertising and Marketing (11%), Events and Entertainment (7.5%) and Agriculture (7.3%)
Majority also reported that entrepreneurial training programmes are essential in providing entrepreneurs with the relevant skills to grow and expand their businesses in Nigeria. Although only 40% of entrepreneurs reported that they had acquired skills to better run their businesses, 99.7% of female entrepreneurs and 99.2% of youth entrepreneurs that attended training reported that the training has been helpful for their business.
As investors and businesses worldwide turn their attention to the vast opportunities embedded in the diverse markets of Africa, the significance of profitable business ideas in the region is underscored.
In the light of these massive opportunities for entrepreneurs in Nigeria, there has never been a better time to venture into entrepreneurship. Here are five business ideas to try out:
Agricultural Export Business
After many years of dependency on natural oil and gas. Nigeria is finally acknowledging one of its greatest assets to serve and provide for its people.
With the country’s rich soil and favourable climates, leveraging on Agricultural export business presents you with a lucrative opportunity to make reasonable amounts of profits and investments opportunities.
You can tap into the local and international markets by buying and reselling products like rice, beans, cash crops, fruits, cocoa etc.
Opportunities also exist in processed food production by selling packaged foods like snacks and beverages to cater to the evolving needs of Nigerians
Solar Energy Installation and Distribution
Solar energy is fast becoming the masses favourite in Nigeria, establishing a business in the Solar Energy sector is a smart way to tap into the growing economy.
With abundant sunlight across the country, you can install and distribute renewable solar energy systems for residential, commercial, and industrial clients. Also the current trends to transition into clean and sustainable energy solutions favourably align with global initiatives. Meaning you can capitalise on government incentives and the masses need by offering reliable and efficient solar solutions to consumers in Nigeria.
Mobile App and Web Development
The widespread adoption of smartphones and the strong emergence of tech companies has created a massive demand for mobile applications and websites.
Starting a journey into Mobile App and Web Development opens up a myriad of technological opportunities for you in and outside Nigeria.
With these skills you can create apps that cater to local and foreign needs, such as e-commerce, healthcare, or education and make a reasonable amount of money.
Custom Clothing and Tailoring
As the saying goes “Fashion never runs out of style” and “Fashion is where the money is”. Creating a business in Custom Clothing and Tailoring aligns with the growing appreciation for personalised fashion in Nigeria, as we all know Nigerians adore fashionable lifestyles
You can offer display tailoring services by creating a custom-made clothing for potential buyers.With a keen eye for elegance and excellence, custom clothing businesses contribute to the vibrant fashion landscape.
And as consumers seek unique and well-fitted apparels , this is an opportunity for you to tap into the market to build a loyal customer base, ensuring a profitable and sustainable venture.
Social Media Consulting and Freelance Writing Business
Social media has become an integral part of the Nigerian society and economy. Almost every brand and company operates their day to day business activities on platforms like Facebook, X, YouTube and others.
Establishing and positioning yourself as a Social Media Consultant addresses the evolving needs of an expert consultant in a digitally connected world. You can offer various social media services like content creation, content writings, copywriting, strategy development, and analytics.
By helping businesses establish and enhance their online presence, you contribute to their brand visibility and audience engagement.
Majority of businesses are increasingly recognize the importance of social media, you can leverage these opportunities by using your expertise to provide valuable solutions, and ensuring a profitable business with a positive impact on clients’ digital success.
Conclusion:
Entrepreneurship is a feasible option to earn money and build wealth depending on the type. It provides access, freedom and control over your time and resources management, a dream for many individuals in today’s world. Trying out one of the ideas above also gives you the opportunity to leverage the growing entrepreneurial market and economic space in Nigeria.
However it’s important to know that entrepreneurship isn’t an easy endeavor as it requires time, capital and resources. You must be able to lead, manage and organize your business if you want to be successful.
